How ATM Processing Works? ATM cards use processors to connect to there various ATM networks. If you take your ATM card out of your wallet now, you will see network logos (also known as bugs) on the back. You might notice that the Cirrus bug looks similar to the Master Card logo. That is because it’s the ATM processing network of Master Card. The Plus network is the ATM side of Visa. Plus and Cirrus are the National ATM networks. All other logos and bugs are regional networks. Financial Institutions commonly referred to as Banks issue both credit cards and debit cards. Debit cards can be ATM cards and/or Check Cards. When someone swipes or inserts a debit or credit card into an ATM, it asks for a PIN (personal identification number). When you process ATM transactions with Merchant Service Group, Inc. your ATM machine will dial a toll free number to begin the authorization process. Your ATM will be re-programmed with a TID (terminal ID number) that will identify it on our processor so the networks will allow the transaction to complete. This TID along with other identifying information lets the cardholder's bank know that the transaction is taking place on your ATM. Your ATM will connect to the networks through our processing center and then to the cardholder’s bank. If there are sufficient funds in the ATM cardholders account for the withdrawal request, the transaction will be completed. The ATM receives the authorization and dispenses the cash requested. Your ATM can also be used if someone just wants to check their account balance or transfer funds before or after withdrawing cash. There would be no convenience fee charged by your ATM for non-cash withdrawal transactions. How do you make Money? Well, several ways. First, Banks pay a small fee to the ATM networks for connecting the cardholder to the bank. Second, your ATM charges the cardholder a fee (referred to as a surcharge or convenience fee). You, the ATM owner, set this fee. The average ATM transaction is $60 but a banking rule states that a cardholder must be able to withdraw a maximum of $200 when paying a surcharge. You can set a limit on how much can be taken out, but it needs to be at least $200. Keep in mind that there are very few $200 transactions. The average surcharge is typically set between $1.50 - $2.00. If you own the ATM you can set it at whatever you want, however some states have specific maximums. All of the money taken out of your ATM is directly deposited back into your checking account in 48 business hours. All funds go through the Federal Reserve ACH (automated clearing house). Funds from surcharge income are direct deposited into your checking account also, but at the end of each month for easy book keeping. It's just like having your credit card charges direct deposited into your checking account. One of the most frequently asked questions we receive is how much can I make with an ATM. This is not always easy to answer. The average ATM in a retail environment (not a bank) does about 8 – 10 transactions per day. Keep in mind that there are ATM owners only doing two or three transactions a day on an ATM too. If you surcharge $1.50, then Merchant Service Group, Inc. pays you $1.65. This means if your ATM were processing 3 – 4 transactions per day you would earn $150 - $200 per month. If your ATM falls in the average usage of 8 – 10 per day, you would earn approx $13 - $17 per day or around $400 - $500 per month. An outdoor ATM or one of our Drive Up or Walk up kiosks can produce twenty-five (25) transactions a day or more (that’s only 1 per hour). With 25 transactions per day you would earn over $1200 per month.   Merchant Service Group, Inc. | Referral Partner Opportunities  | 6901 Jericho Turnpike, Suite 240, Syosset, NY 11791 Toll Free: (800) 655-0899, Ext 142 | Fax: (800) 861-1442 |  Email: agents@gomsg.com Corporate Site www.gomsg.com |  CRM Sales Portal www.gomsg.net |  Employment Opportunities © Copyright 2009. Merchant Service Group, Inc. All Rights Reserved. Merchant Service Group is a registered ISO/MSP of BancorpSouth Bank, Tupelo, MS